Pandit: Financial system needs more
market-driven reforms Citigroup CEO Vikram Pandit writes that the financial
system can be improved by increasing transparency and giving
markets more tools to discipline firms that use too much
leverage.Financial Times(tiered subscription model)(10
Jan.)
S&P downgrades credit rating of
European rescue facility Standard & Poor's cut the triple-A credit rating of
the European Financial Stability Facility, to AA+, after
downgrading nine euro-zone nations' ratings. "The EFSF's
obligations are no longer fully supported either by guarantees from
EFSF members rated AAA by S&P, or by AAA rated securities," the
credit rating agency said. "Credit enhancements sufficient to
offset what we view as the reduced creditworthiness of guarantors
are currently not in place." Bloomberg(17 Jan.), Reuters(16 Jan.)
France's rating remains under
pressure, Moody's says Moody's Investors Service said its outlook on
France's triple-A credit rating is stable, but the rating is under
pressure and will be assessed this quarter. The comments
come days after Standard & Poor's downgraded France's rating.
The Wall Street Journal(17 Jan.)
London's financial sector shrinks
faster than its peers London remains a global financial hub, but it is
shrinking more rapidly than others as banks face political attacks,
lower trading revenues and other challenges. "We're going to
end up with a smaller, more focused financial sector," said Michael
Kirkwood, former head of Citigroup's UK division. "The entire
financial world became too bloated in the run-up to the financial
crisis, and London was excessively bloated." Bloomberg Businessweek(17 Jan.)
Industry studies "mutual recognition"
for rules A coalition of industry groups, including AFME,
commissioned law firm Clifford Chance to study the idea of "mutual
recognition" for EU and US regulations.Financial Times(tiered subscription model)(16
Jan.)
European Commission reviews its
policy on bank structure Bank of Finland Governor Erkki Liikanen will lead an
assessment of the European Commission's policy on bank
structure. The move could lead to more regulation of the
financial sector and might upset national governments that want to
retain responsibility for their financial institutions. Reuters(16 Jan.)
